DRAFT

Minutes of the Technical Advisory Committee (TAC) Meeting

ERCOT Austin – 7620 Metro Center Drive – Austin, Texas 78744

Thursday, April 5, 2012 – 9:30 a.m.

Attendance

Members:

Bivens, Danny / OPUC
Boyd, Phillip / City of Lewisville
Brandt, Adrianne / Austin Energy
Brewster, Chris / City of Eastland
Burke, Allan / TNMP
Cochran, Seth / DC Energy
Comstock, Read / Direct Energy
Downey, Marty / TriEagle Energy
Emery, Keith / Tenaska Power Services
Greer, Clayton / Morgan Stanley
Grimes, Mike / EDP Renewables
Grubbs, David / Garland Power and Light
Hellinghausen, Bill / EDF Trading
Helton, Bob / GDF Suez
Jones, Brad / Luminant
Lewis, William / Cirro Group
McCann, James / Brownsville PUB
Minnix, Kyle / Brazos Electric Power Cooperative
Nelson, Stuart / Lower Colorado River Authority
Ögelman, Kenan / CPS Energy
Pieniazek, Adrian / NRG Texas
Ross, Richard / AEP Service Corporation
Sims, John / Nueces Electric Cooperative
Smith, Bill / Air Liquide
Soutter, Mark / Invenergy Energy Management
Walker, DeAnn / CenterPoint Energy / Alt. Rep. for John Houston
Wittmeyer, Bob / Consumer – Residential
Wood, Henry / South Texas Electric Cooperative
Zimmerman, Mark / Chaparral Steel Midlothian
Zlotnik, Marcie / StarTex Power

The following proxy was assigned:

·  Read Comstock to Marty Downey

Guests:

Bevill, Rob / GMEC
Burkehalter, Bob / ABB
Calzada, Gricelda / AEP
Carlson, Trent / JP Morgan
Carter, Lance / Ventyx
Coleman, Katie / TIEC
Cote, Daryl / Hartigen
Escamilla, José H. / CPS Energy
Goff, Eric / Reliant
Golden, Ashley / Hartigen
Hendrick, Bridget / Sharyland Utilities
Lee, Jim / Direct Energy
McKeever, Debbie / Oncor
Nassar, Elie / Ventyx
Ogin, Brett / ConEdSolutions
Potts, David / Hartigen
Reed, Carolyn / CenterPoint Energy
Reid, Walter / Wind Coalition
Roach, Temujin / PUCT
Schwarz, Brad / E.ON Climate and Renewables
Scott, Kathy / CenterPoint Energy
Shepherd, Scott / Ventyx
Thompson, Clark / Enchanted Rock / Via Teleconference
Trammell, Ben / Lone Star Trans.
Trayers, Barry / Citigroup Energy Inc.
Trout, Seth
Walker, DeAnn / CenterPoint Energy
Whittle, Brandon / Stratus Energy Group
Williams, Blake / CPS Energy

ERCOT Staff:

Albracht, Brittney
Anderson, Troy
Ashbaugh, Jackie
Boren, Ann
Hobbs, Kristi
Wattles, Paul

Unless otherwise indicated, all Market Segments were present for a vote.

2012 TAC Vice Chair Bob Wittmeyer called the April 5, 2012 TAC meeting to order at 9:33 a.m.

Antitrust Admonition

Mr. Wittmeyer directed attention to the Antitrust Admonition, which was displayed. A copy of the Antitrust Guidelines was available for review.

Approval of Draft TAC Meeting Minutes (see Key Documents)[1]

March 1, 2012

Mark Soutter moved to approve the March 1, 2012 TAC meeting minutes as posted. Stuart Nelson seconded the motion. The motion carried unanimously.

Protocol Revision Subcommittee (PRS) Report (see Key Documents)

Tom Burke presented Revision Requests for TAC consideration.

NPRR412, Quick Start Generation Resource Compliance Metric Adjustments

NPRR439, Updating a Counter-Party’s Available Credit Limit for Current Day DAM

NPRR441, Revision of Dynamic Rating Recommendation Posting Timeline

SCR770, Revision to Outage Scheduler Entry for Resource Maintenance Outage Level Designation

SCR771, ERCOT System Change Allowing Independent Master QSE to Represent Split Generation Resources

Bob Helton moved to recommend approval of NPRR412, NPRR439, NPRR441, SCR770, and SCR771 are recommended by PRS in the respective 3/22/12 PRS Reports. Stuart Nelson seconded the motion. Kristi Hobbs reviewed the ERCOT opinion for each item. The motion carried unanimously.

NPRR448, Clarification of Database Query Results – Urgent

Rob Bevill noted that the 4/3/12 Green Mountain comments corrected language to accurately reflect the business process.

DeAnn Walker moved to recommend approval of NPRR448 as recommended by PRS in the 3/22/12 PRS Report as amended by the 4/3/12 Green Mountain comments. Ms. Brandt seconded the motion. The motion carried unanimously.

NPRR449, Reduce Maximum CRR Transaction Limit in Auctions - Urgent

Eric Goff noted that NPRR449 is needed to optimize rationing in the CRR Auction bid process. Ms. Brandt suggested that additional Protocol language is needed to describe the process by which transaction limits are reviewed and adjusted going forward; Mr. Goff offered to take up that discussion at the Wholesale Market Subcommittee (WMS). Market Participants reviewed the 4/4/12 ERCOT comments.

Seth Cochran moved to recommend approval of NPRR449 as recommended by PRS in the 3/22/12 PRS Report and as amended by the 4/4/12 ERCOT comments; set an initial transaction limit of 5,000 for annual CRR Auctions and 7,500 for monthly CRR Auctions; and request that WMS review the process and timelines associated with setting transaction limits for future CRR Auctions. Clayton Greer seconded the motion. The motion carried with two abstentions from the Investor Owned Utility (IOU) Market Segment.

Brad Jones moved to reconsider NPRR449. Mr. Wood seconded the motion. Mr. Cochran proposed language to clarify that the historical transaction data that ERCOT will provide upon request will include the number of active CRR Account Holders aggregated up to the associated Counter-Party. The motion to reconsider NPRR449 carried unanimously.

Mr. Wood moved to recommend approval of NPRR449 as recommended by PRS in the 3/22/12 PRS Report, as amended by the 4/4/12 ERCOT comments, and as revised by TAC; set an initial transaction limit of 5,000 for annual CRR Auctions and 7,500 for monthly CRR Auctions; and request that WMS review the process and timelines associated with setting transaction limits for future CRR Auctions. Mr. Greer seconded the motion. The motion carried with two abstentions from the IOU Market Segment.

NPRR450, Revise Requirements for Contracts to Procure Additional Capacity to Alleviate Emergency Conditions – Urgent

Kenan Ögelman noted that NPRR450 does not clarify the parameters surrounding the procurement of capacity from Load, but rather addresses how the ERCOT Board will review such contracts. Mr. Wittmeyer noted that other Revision Requests in development are devoted to Load participation and the depreciation of capital contributions.

Mr. B. Jones moved to recommend approval of NPRR450 as recommended by PRS in the 3/22/12 PRS Report. Mr. Wood seconded the motion. The motion carried with one objection from the Independent Retail Electric Provider (IREP) Market Segment.

NPRR451, Implementation of New P.U.C. SUBST. Rule 25.507, Electric Reliability Council of Texas (ERCOT) Emergency Response Service (ERS) – Urgent

Mr. Burke noted the March 22, 2012 Public Utility Commission of Texas (PUCT) approval of Project 39948, Rulemaking to Electric Reliability Council of Texas (ERCOT) Emergency Interruptible Load Service (EILS), and that a Special PRS meeting was held on March 29, 2012 to consider NPRR451. Ms. Hobbs noted that the 4/3/12 ERCOT comments are administrative in nature, and that Enchanted Rock Reliability Services filed 4/3/12 and 4/4/12 comments.

Clark Thompson reviewed language proposed in the 4/4/12 Enchanted Rock Reliability Service comments and expressed concern that, without clarification, NPRR451 might be confusing and seem to require additional metering at the substation for Distributed Generation. Ms. Walker expressed concern that the 4/4/12 Enchanted Rock Reliability Service comments remove the capability to measure both generation and Load being served, and that the 4/3/12 Enchanted Rock Reliability Service comments essentially propose net metering.

Market Participants discussed that the Performance Disturbance Compliance Working Group (PDCWG) had reviewed NPRR451 and expressed some concern regarding voltage and frequency control, but that concerns could not be quantified for lack of data at this time; that ERCOT should collect and provide performance data to ROS working groups, specifically PDCWG and DWG, to analyze impacts to the ERCOT System; and that issues should be addressed before significant amounts of the type of generation contemplated in NPRR451 are on the system. Mr. Greer opined that stakeholders need to know where ERS Resources are located, and noted that some are residential programs and will affect voltage studies. Marguerite Wagner added that ERS Resource size and locations need to be disclosed for forward hedging. Randy Jones noted discussions that the largest concentration of ERS Resources will be in metro areas, and expressed concern for the potential for feeder circuit issues during Energy Emergency Alert (EEA) Step 2; impacts to turbines in the area of ERS Resources; the need for dynamic studies; and difficulties in planning.

Richard Ross moved to recommend approval of NPRR451 as recommended by PRS in the 3/29/12 PRS Report and as amended by the 4/3/12 ERCOT comments. Mr. B. Smith seconded the motion. Market Participants debated whether to amend the motion to require the posting of ERS Resource locations, or to develop a separate NPRR to address the issue. Market Participants requested that WMS review alignment of ERS Resource performance and enforcement, and that ROS review forthcoming data for operational impacts. The motion carried with one objection from the Independent Power Marketer (IPM) Market Segment.

Notice of PRS Rejection of NPRR440, Consideration of Generation Availability in RMR Analyses

Mr. Burke provided notice of the PRS rejection of NPRR440.

Impact Assessment for Parking Deck NPRR260, Providing Access to MIS Secure Area to MIS Registered Users

Mr. Wittmeyer moved to recommend approval of the impact assessment for NPRR260 as recommended by PRS in the 3/22/12 PRS Report – Impact Assessment. Mr. Ögelman seconded the motion. The motion carried with two objections from the Cooperative and IOU Market Segments.

Endorsement of 2013 Revision Request Project Funding Approach (see Key Documents)

Troy Anderson presented the 2013 Revision Request project funding approach.

Mr. B. Jones moved to endorse the 2013 Revision Request project funding approach as proposed by ERCOT and recommended by PRS. William Lewis seconded the motion. The motion carried unanimously.

Reliability and Operations Subcommittee (ROS) Report (see Key Documents)

Blake Williams presented revision requests for TAC consideration and provided an update regarding the implementation of System Change Request (SCR) 760, Recommended Changes Needed for Information Model Manager and Topology Processor for Planning Models. Mr. Williams added that there is significant ongoing work between ERCOT Staff and Market Participants to advance Nodal Planning, with WebEx meetings every two weeks.

Nodal Operating Guide Revision Request (NOGRR) 084, Daily Grid Operations Summary Report

NOGRR088, Synchronization with NPRR424, Reactive Capability Testing Requirements for IRRs

NOGRR090, Change in Entity Responsible for Reporting Participation in Severe Weather Drills

Planning Guide Revision Request (PGRR) 015, New Section 3, Regional Planning

PGRR016, Planning Reserve Margin Review

Mr. Anderson explained that the cost of implementing NOGRR084 was due to system changes to deliver the Daily Grid Operations Report. Mr. Ögelman suggested that NOGRR088 be tabled until the next TAC meeting, should the ERCOT Board revise NPRR424, Reactive Capability Testing Requirements for IRRs.

Ms. Walker moved to recommend approval of NOGRR084, NOGRR090, PGRR015, and PGRR016 as recommended in the respective 3/8/12 ROS Reports, and to table NOGRR088 until the next TAC meeting. Mr. Wood seconded the motion. The motion carried unanimously.

Retail Market Subcommittee Report

Mr. R. Bevill reviewed recent RMS activities.

Retail Market Guide Revision Request (RMGRR)108, Correction to Transactional Process for TX SET 4.0

Mr. Ross moved to approve RMGRR108 as recommended by RMS in the 3/21/12 RMS Report. Ms. Walker seconded the motion. The motion carried unanimously.

Wholesale Market Subcommittee (WMS) Report

Mr. Goff reviewed recent WMS activities.

Settlement Metering Operating Guide Revision Request (SMOGRR) 012, Synchronization with NPRR374, Modification of SCR Process and Urgency Requirements

Ms. Walker moved to approve SMOGRR012 as recommended by WMS in the 3/7/12 WMS Report. Marcie Zlotnik seconded the motion. The motion carried unanimously.

2012 TAC Goals (see Key Documents)

Mr. Ögelman reviewed the draft 2012 TAC Goals and reminded Market Participants that the goals are traditionally aspirational and informational, and are in no way binding on stakeholders to support particular revision requests. Mr. Williams noted the formation of the ROS Operations and Planning Synchronization Task Force (OPSTF) to review a list of 14 issues associated with Goal #7; Market Participants recommended that SCR760 be included, by name, in Goal #7.

Mr. Soutter moved to approve the 2012 TAC Goals as amended by TAC. David Grubbs seconded the motion. The motion carried unanimously.

Market Enhancements Task Force (METF) Report

Kenneth Ragsdale reviewed recent activities of the METF and highlighted questions developed for vendors and other Independent System Operators (ISOs), noting that three vendors would present at the April26, 2012 METF meeting. Mr. Ragsdale added that a white paper would be developed out of that meeting and presented to TAC. Ms. Wagner suggested that various work products of the METF be evaluated, among other metrics, as to their support of the Energy-Only market design. Mr. Ögelman noted that issues under discussion at METF are likely to have system impacts at the QSE level and encouraged Market Participants to send their subject matter experts to METF meetings.

ERCOT Operations, Planning, and IT Report

There were no reports for discussion.

Other Business

Discussion of PUCT Final Order in Docket No. 39433 Longhorn Energy / West Oaks Energy Appeal and Complaint ERCOT's Decision to Conduct Market Resettlement

Mr. Ögelman noted the PUCT Final Order in Docket No. 39433 and asked Market Participants whether the Nodal Protocols and settlement timeline should be revisited to provide more certainty and clarity regarding resettlement. Market Participants discussed reviewing price correction and finalization procedures; potential negative impacts to price finality; and that definition is needed regarding the standard by which ERCOT determines the need for a correction. Mr. Ögelman noted that while making no revision to the processes is acceptable, it is incumbent on Market Participants to review the rules; Mr. Ögelman noted that the PUCT discussed the possibility of attendant violations. Market Participants requested that WMS review the issue.

Ms. Hobbs noted that ERCOT Staff filed NPRR456, Clarification of Definition of Electrically Similar Settlement Points and Heuristic Pricing Posting, to create a daily public report to post the heuristic pricing associations for Day-Ahead Market (DAM) and Real-Time Market (RTM) price calculations.

Adjournment

Mr. Ögelman adjourned the April 5, 2012 TAC meeting at 11:34 a.m.

DRAFT Minutes of the April 5, 2012 TAC Meeting /ERCOT Public

Page 6 of 6

[1] Key Documents referenced in these minutes may be accessed on the ERCOT website at:

http://www.ercot.com/calendar/2012/04/20120405-TAC